Hamburg: Retail trade 2019 / 2020

Property prices in Hamburg are rising – with the exception of rents for retail space. “Last year, the booming online trade again put the stationary retail trade in Hamburg’s inner city under pressure. Declining sales also affected the maximum rents attainable in Hamburg’s top locations; last year, these fell by as much as € 20/m² per month”, explains Sven Bechert, head of Retail at Grossmann & Berger, a member of German Property Partners (GPP). Nevertheless, with a take-up of some 27,300 m² from over 60 agreements, 2019 was well above the figure for the year before (18,200 m²) from practically the same number of agreements. “Great as the challenges to the stationary retail trade in Hamburg may seem, it is still developing dynamically”, says Bechert.
 

New concepts and vendors vitalize the retail trade

Retailers are responding more and more to the increasing competition from online trading. “Hamburg’s retail outlets are defending themselves against the online market with innovative concepts and exciting new gastronomic services. For example, more and more retailers are offering their customers an eatery as well as enjoyable shopping. The risk of spaces being left empty by companies pulling out is being counteracted with dynamic pop-up stores”, says Bechert. He also sees it as positive “that the more moderate rents are giving new, hitherto less established suppliers a chance to gain a foothold in the City. Examples include various new fitness and gastronomic strategies. Such ideas are bringing more and more diversity to Hamburg’s retail landscape.”
 

Tourism as an important source of income for the stationary retail trade

“Tourism is gaining more and more significance as an economic factor and partly cushioning the losses caused by online business”, Bechert continues. Hamburg was again able to top the record number of visitors in 2018. “Numerous additional hotels will open in the city in the next few years, offering prospects that this development will continue”, the expert predicts. According to Hamburg Tourismus, about 25 hotels with well over 10,000 new beds are due to open by the end of 2021.
 

Spitalerstrasse still the most expensive

The highest rents in Hamburg’s inner city were achieved on Spitalerstrasse, although these, too, fell appreciably last year. The maximum rents for comparatively small spaces between 80 and 120 m² in this street were around 275 €/m²/month, whereas for larger shop premises between 300 and 500 m² they only reached 160 €/m²/month. This represents a fall in rates of 5 and 11 % respectively compared to 2018. A similar rent level was reported for retail spaces between 80 and 120 m² at Neuer Wall. At 270 €/m²/month, the maximum rent there fell by about 4% compared to the previous year. At a maximum of 100 €/m²/month, the prices for larger spaces of 300 to 500 m² in this area were some 17 % lower than in 2018. The trend towards small units in the City continued in 2019. 42 % of last year’s rental agreements were concluded for spaces up to 150 m²; only about one agreement in 12 was for premises over 1,000 m². “The reduced demand for larger retail spaces explains the sharp decline in the maximum rents that can be achieved in this size range”, Bechert explains.
 

Fashion/apparel ahead of gastronomy and drug discounters

With a share of about 46 % of the new-lets volume, the fashion/apparel sector led the field last year. Five of the ten biggest deals in 2019 came from the fashion sector. They included the renting of around 3,000 m² by “UNIQLO” in the new development at “Alter Wall”, by “Anine Bing” in the “Stadthöfe”, by “Anthropologie” (also in the “Alter Wall” project) and by “Isabel Marant“ (Neuer Wall 80). In second place were tenants from the gastronomic sector with an approximately 15 % share of the space. They included the new Food Court in the “Stadthöfe”, with tenants like “L’Osteria” (opening in 2020), “Dean&David”, “Bok”, “Goa Zone”, “Extrawurst” and the burger chain “Peter Pane”, for which Grossmann & Berger brokered a suitable space. Third place (8 %) was taken by the drug discounters. A major player in this field is “Rossmann”, with its space in “Streit’s Haus” at Jungfernstieg.   
 
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